By PR | 01:51 PM August 18, 2021
The Securities and Exchange Commission (SEC) clarified on Wednesday that no mandatory grace period will be granted for the payment of loans and/or interest falling due within the recently announced Enhanced Community Quarantine (ECQ) period, which is from August 6-20, 2021.
Nevertheless, the SEC still strongly encouraged financing companies (FCs), lending companies (LCs), and Accredited Microfinance Non-Government Organizations (MF-NGOs) to continue implementing debt relief measures that will help ease their borrowers’ financial burden, taking into consideration the adverse impact of the COVID-19 pandemic to the borrowing public, and based on the continuing assessment of their cash flows.
FCs, LCs, and Accredited MF-NGOs may also develop and implement their own programs or schemes that will provide financial relief to their borrowers.
Financial relief requests shall be directed to the concerned FC, LC, or Accredited MF-NGO.
Previously, FCs, LCs, and Accredited MF-NGOs accredited under Republic Act No. 10693, otherwise known as the Microfinance NGOs Act, were granted prudential and regulatory relief measures by the SEC and other concerned regulatory bodies, to enable them to continuously provide financial services, and support households and businesses amid the public health crisis.
The SEC also continued to closely monitor the impact of the pandemic on FCs, LCs, and Accredited MF-NGOs to immediately address their concerns and promptly implement policies that shall sustain the regulated entities’ operations and assist in their economic recovery.